Particle.news
Download on the App Store

Elliott Takes 5.01% Stake in Toyota Industries to Pressure Take-Private Bid

The move sets up a fight over a related-party buyout price.

Overview

  • Elliott Investment Management disclosed a 5.01% holding in Toyota Industries after spending 268 billion yen and signaled it may submit important shareholder proposals.
  • Toyota Motor, Toyota Fudosan and Toyota Chairman Akio Toyoda unveiled a plan in June to take Toyota Industries private at 16,300 yen per share.
  • Toyota Industries’ stock closed at 17,690 yen on Dec. 10, remaining above the offer price and indicating investors are pricing in a higher outcome.
  • Elliott has criticized the proposed deal as undervaluing the company and lacking transparency and proper governance.
  • As of end-September, Toyota Motor owned about 25% of Toyota Industries and Toyota Fudosan 5.42%, making Elliott one of the largest outside shareholders as scrutiny from global investors and Japanese authorities intensifies.